SuperGroup's shares slump despite hike in revenues

 
Helen Cahill
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Superdry Art Basel
SuperGroup owns the fashion brand Superdry (Source: Getty)

SuperGroup's share price has slumped today despite a jump in revenue.

The figures

For the year ending 29 April, SuperGroup's revenue growth came in at 27.2 per cent, with sales up from £590.1m to £750.6m. Retail like-for-like sales jumped up from £415.9m to £501.6m, a rise of 12.7 per cent.

The firm said profit would come in at between £86m and £87m, in line with the market's expectations.

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Despite the strong headline figures, SuperGroup's share price was down 4.66 per cent to 1,574p at time of writing.

Why it's interesting

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said investors may well be reacting to SuperGroup's fourth quarter growth, which was 9.4 per cent on a like-for-like basis. This was the slowest quarter of growth for the year, and was down from a quarterly growth of 15.4 per cent in the final quarter of the prior financial year.

Read more: Super first half for Supergroup as weak pound pushes up sales

In addition, a third of SuperGroup's revenue growth could be attributed to the devaluation of sterling, and SuperGroup warned its margins will fall for the full year.

However, analysts were generally upbeat about SuperGroup's performance. Kate Calvert, Investec analyst, said it was a "consistent performance", especially given the levels of growth that the company was already building on this year. Cantor Fitzgerald's Mark Photiades said the group had "exciting prospects" as it moves ahead with its global expansion.

What SuperGroup said

Euan Sutherland, chief executive of SuperGroup, said: "The 2017 financial year has seen another good year of sales and profit growth. This has been achieved by improving our product ranges and introducing new categories to excite, inspire and maintain the brand's revevance while, in parallel, investing in our development markets and improving our infrastructure.

"With a clear strategy, and a number of long-term opportunities to establish Superdry as a global lifestyle brand, we remain confident in the continued delivery of sustainable revenue and profit growth."

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